Australia’s First Home Guarantee Explained - Teach Me About Property

Buying your first home can feel impossible — especially when saving a full 20% deposit seems out of reach. That’s where the First Home Guarantee (part of the Australian government’s Home Guarantee Scheme) comes in. At Teach Me About Property, we are teaching our students how to use this tool strategically to get into the market sooner.

💡 What It Is

The First Home Guarantee allows eligible first home buyers to purchase with as little as a 5% deposit. Instead of paying thousands in Lenders Mortgage Insurance (LMI), the government steps in and guarantees the loan with your lender (up to 15% of the property’s value).

👉 That means you can borrow up to 95% of the property value without the added LMI cost.

✅ Who’s Eligible?

To qualify, you’ll need to tick a few boxes. Here’s the criteria:

• Residency: Australian citizen or permanent resident.
• Income: $125k max taxable income for singles, or $200k combined for couples (based on last year’s ATO Notice of Assessment).
• Deposit: At least 5% of the property’s value saved.
• First Home Buyer Status: Must be a first-timer, or not have owned property in the past 10 years.
• Live-In Rule: The home must be for you to live in (not an investment property).
• Age: 18 or older.

🏘️ What Can You Buy?

The Guarantee covers a wide range of property types, as long as they sit under the price cap for your chosen area:

• Existing houses, townhouses or apartments
• House and land packages
• Vacant land + a building contract
• Off-the-plan apartments or townhouses

👉 Remember: price caps vary by postcode, so we can help you check before you buy.

💳 What Kind of Loan?

To qualify under the Scheme, your loan needs to be:

• An owner-occupier loan (you live in the property).
• Principal & Interest repayments (with very limited exceptions for Interest Only).
• A term of up to 30 years (plus time to build if you’re building).

📝 How Do You Apply?

You can’t apply directly through Housing Australia — it has to go through a participating lender. They’ll:

1. Check your eligibility.
2. Submit your application to secure your spot.
3. Hold your place for 90 days while you find a property.

Teach Me About Property can walk you through the process, show you how it fits into your long-term wealth game, and help you avoid rookie mistakes.

🎯 The TMAP Take

• This is a powerful tool if you’re serious about entering the market now.
• It’s not just about “getting a house.” It’s about using the TMAP-2-STEP: start with what you can afford today, then leverage growth and equity into the home or portfolio you really want tomorrow.
• It turns the sacrifice of saving a big deposit into an opportunity to act sooner and build wealth earlier.

👉 Want to know if you qualify?
Our team at Teach Me About Property can run the numbers with you, check eligibility, and guide you through the process.

📅 Register for the webinar today and let’s see if the First Home Guarantee can be your ticket to the top of the mountain.